IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v144y2022icp729-739.html
   My bibliography  Save this article

Resilient leadership and outward foreign direct investment: A conceptual and empirical analysis

Author

Listed:
  • Qiao, Penghua
  • Fung, Anna
  • Fung, Hung-Gay
  • Ma, Xinnian

Abstract

We developed and tested a theoretical model that links the effect of resilient leadership to firms’ outward foreign direct investment (OFDI). We identified resilience scores using videos of CEOs/Board chairs and the Connor-Davidson Resilience Scale. We theorized that resilient leaders will have a positive effect on research and development (R&D) investment, human capital investment, and OFDI. Moreover, R&D and human capital investments will have a mediating effect on resilient leaders in driving OFDI. The positive effect of resilient leadership on OFDI will be stronger when confronted with external forces, such as the competitive intensity of industry and government subsidies, whereas the positive effect will be weaker when resilient leaders have prior foreign experience and their firms are large. We found support for these ideas in a longitudinal sample of Chinese companies.

Suggested Citation

  • Qiao, Penghua & Fung, Anna & Fung, Hung-Gay & Ma, Xinnian, 2022. "Resilient leadership and outward foreign direct investment: A conceptual and empirical analysis," Journal of Business Research, Elsevier, vol. 144(C), pages 729-739.
    • Handle: RePEc:eee:jbrese:v:144:y:2022:i:c:p:729-739
    DOI: 10.1016/j.jbusres.2022.02.053
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322001722
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.02.053?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Raff, Horst & Ryan, Michael & Stähler, Frank, 2018. "Financial frictions and foreign direct investment: Evidence from Japanese microdata," Journal of International Economics, Elsevier, vol. 112(C), pages 109-122.
    2. Santoro, Gabriele & Bertoldi, Bernardo & Giachino, Chiara & Candelo, Elena, 2020. "Exploring the relationship between entrepreneurial resilience and success: The moderating role of stakeholders' engagement," Journal of Business Research, Elsevier, vol. 119(C), pages 142-150.
    3. Lilach Nachum & Srilata Zaheer, 2005. "The persistence of distance? The impact of technology on MNE motivations for foreign investment," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 747-767, August.
    4. Youssef, Carolyn M. & Luthans, Fred, 2012. "Positive global leadership," Journal of World Business, Elsevier, vol. 47(4), pages 539-547.
    5. Igor Filatotchev & Jenifer Piesse, 2009. "R&D, internationalization and growth of newly listed firms: European evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1260-1276, October.
    6. Ayala, Juan-Carlos & Manzano, Guadalupe, 2014. "The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis," Journal of Economic Psychology, Elsevier, vol. 42(C), pages 126-135.
    7. Haiyang Chen & Michael Y. Hu & Joseph C. P. Shieh, 1991. "The Wealth Effect of International Joint Ventures: The Case of U.S. Investment in China," Financial Management, Financial Management Association, vol. 20(4), Winter.
    8. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2007. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 499-518, July.
    9. Fung, Hung-Gay & Qiao, Penghua & Yau, Jot & Zeng, Yuping, 2020. "Leader narcissism and outward foreign direct investment: Evidence from Chinese firms," International Business Review, Elsevier, vol. 29(1).
    10. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    11. Ajai S Gaur & Xufei Ma & Zhujun Ding, 2018. "Home country supportiveness/unfavorableness and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 324-345, April.
    12. Jing‐Lin Duanmu & Maoliang Bu & Russell Pittman, 2018. "Does market competition dampen environmental performance? Evidence from China," Strategic Management Journal, Wiley Blackwell, vol. 39(11), pages 3006-3030, November.
    13. Ly, Amadú & Esperança, José & Davcik, Nebojsa S., 2018. "What drives foreign direct investment: The role of language, geographical distance, information flows and technological similarity," Journal of Business Research, Elsevier, vol. 88(C), pages 111-122.
    14. Deng, Ping & Zhang, Shuo, 2018. "Institutional quality and internationalization of emerging market firms: Focusing on Chinese SMEs," Journal of Business Research, Elsevier, vol. 92(C), pages 279-289.
    15. Hu, Helen Wei & Cui, Lin, 2014. "Outward foreign direct investment of publicly listed firms from China: A corporate governance perspective," International Business Review, Elsevier, vol. 23(4), pages 750-760.
    16. Chris Changwha Chung & Hye Youn Park & Jeoung Yul Lee & Kwanghyun Kim, 2015. "Human capital in multinational enterprises: Does strategic alignment matter?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(7), pages 806-829, September.
    17. Jun Xia & Xufei Ma & Jane W. Lu & Daphne W. Yiu, 2014. "Outward foreign direct investment by emerging market firms: A resource dependence logic," Strategic Management Journal, Wiley Blackwell, vol. 35(9), pages 1343-1363, September.
    18. Basuil, Dynah A. & Datta, Deepak K., 2017. "Value creation in cross-border acquisitions: The role of outside directors' human and social capital," Journal of Business Research, Elsevier, vol. 80(C), pages 35-44.
    19. Mindel Laar & Chris Neubourg, 2006. "Emotions and foreign direct investment: A theoretical and empirical exploration," Management International Review, Springer, vol. 46(2), pages 207-233, March.
    20. Shad S. Morris & Sharon A. Alvarez & Jay B. Barney & Janice C. Molloy, 2017. "Firm-specific human capital investments as a signal of general value: Revisiting assumptions about human capital and how it is managed," Strategic Management Journal, Wiley Blackwell, vol. 38(4), pages 912-919, April.
    21. Oesterle, Michael-Jörg & Elosge, Corinna & Elosge, Lukas, 2016. "Me, myself and I: The role of CEO narcissism in internationalization decisions," International Business Review, Elsevier, vol. 25(5), pages 1114-1123.
    22. Oleg V. Petrenko & Federico Aime & Jason Ridge & Aaron Hill, 2016. "Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 37(2), pages 262-279, February.
    23. Kabongo, Jean D. & Okpara, John O., 2019. "Timing and speed of internationalization: Evidence from African banks," Journal of Business Research, Elsevier, vol. 102(C), pages 12-20.
    24. Tabesh, Pooya & Vera, Dusya & Keller, Robert T., 2019. "Unabsorbed slack resource deployment and exploratory and exploitative innovation: How much does CEO expertise matter?," Journal of Business Research, Elsevier, vol. 94(C), pages 65-80.
    25. Sea-Jin Chang & Jay Hyuk Rhee, 2011. "Rapid FDI expansion and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(8), pages 979-994, October.
    26. Rajneesh Narula & Christian Geisler Asmussen & Tailan Chi & Sumit Kumar Kundu, 2019. "Applying and advancing internalization theory: The multinational enterprise in the twenty-first century," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1231-1252, October.
    27. Xie, Qunyong, 2017. "Firm age, marketization, and entry mode choices of emerging economy firms: Evidence from listed firms in China," Journal of World Business, Elsevier, vol. 52(3), pages 372-385.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qiao, Penghua & Chang, Ming & Zeng, Yuping, 2024. "The influence of digitalization on SMEs’ OFDI in emerging countries," Journal of Business Research, Elsevier, vol. 177(C).
    2. Ionel Sergiu Pirju & Gabriela Marchis & Manuela Panaitescu & Nicolae Florin Prunău & Alisa Mihaela Ambrozie, 2023. "Foreign Direct Investments—A Perspective of Sustainability: Evidence from the Austrian and German Labor Market," Sustainability, MDPI, vol. 15(18), pages 1-18, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qiao, Penghua & Chang, Ming & Zeng, Yuping, 2024. "The influence of digitalization on SMEs’ OFDI in emerging countries," Journal of Business Research, Elsevier, vol. 177(C).
    2. Buckley, Peter J & Cui, Lin & Chen, Liang & Li, Yi & Choi, Yoona, 2023. "Following their predecessors’ journey? A review of EMNE studies and avenues for interdisciplinary inquiry," Journal of World Business, Elsevier, vol. 58(2).
    3. Hu, Tianyou & Yu, Shu & Delios, Andrew, 2024. "Extradition treaties and emerging market firms’ host country location choice✰," Journal of World Business, Elsevier, vol. 59(4).
    4. Fung, Hung-Gay & Qiao, Penghua & Yau, Jot & Zeng, Yuping, 2020. "Leader narcissism and outward foreign direct investment: Evidence from Chinese firms," International Business Review, Elsevier, vol. 29(1).
    5. Ping Deng & Andrew Delios & Mike W. Peng, 2020. "A geographic relational perspective on the internationalization of emerging market firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 50-71, February.
    6. Tang, Ryan W., 2019. "FDI expansion speed of state-owned enterprises and the moderating role of market capitalism: Evidence from China," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    7. Tang, Ryan W., 2021. "Pro-market institutions and outward FDI of emerging market firms: An institutional arbitrage logic," International Business Review, Elsevier, vol. 30(3).
    8. Ryan W. Tang & Chengli Shu & Kevin Z. Zhou, 2022. "State ownership of Chinese firms and their outward foreign direct investment: Political and economic contingencies," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 1097-1123, September.
    9. Bin Liu & Qingtao Wang, 2022. "Speed of China’s OFDIs to the Belt and Road Initiative destinations: State equity, industry competition, and the moderating effects of the policy," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 218-235, June.
    10. Choi, Yoona & Cui, Lin & Li, Yi & Tian, Xizhou, 2020. "Focused and ambidextrous catch-up strategies of emerging economy multinationals," International Business Review, Elsevier, vol. 29(6).
    11. Liu, Feifei & He, Xinming & Wang, Tao, 2023. "In the name of the family: The effect of CEO clan culture background on firm internationalization," Journal of Business Research, Elsevier, vol. 161(C).
    12. Wu, Jie & Zahoor, Nadia & Khan, Zaheer & Meyer, Martin, 2023. "The effects of inward FDI communities on the research and development intensity of emerging market locally domiciled firms: Partial foreign ownership as a contingency," Journal of Business Research, Elsevier, vol. 156(C).
    13. Xie, Qunyong, 2023. "Firm size and Chinese firms' internationalization speed in advanced and developing countries: The moderating effects of marketization and inward FDI," Journal of Business Research, Elsevier, vol. 159(C).
    14. Qiuping Chen & Bo Ning & Yue Pan & Jinli Xiao, 2022. "Green finance and outward foreign direct investment: evidence from a quasi-natural experiment of green insurance in China," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 899-924, September.
    15. Renfei Gao, 2023. "Inward FDI spillovers and emerging multinationals’ outward FDI in two directions," Asia Pacific Journal of Management, Springer, vol. 40(1), pages 265-293, March.
    16. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    17. Ziliang Deng & Xufei Ma & Ziyan Zhu, 2022. "Transactional Dependence and Technological Upgrading in Global Value Chains," Journal of Management Studies, Wiley Blackwell, vol. 59(2), pages 390-416, March.
    18. Xiao, Shufeng & Tian, Xiaocong, 2023. "Performance feedback and location choice of foreign direct investment," International Business Review, Elsevier, vol. 32(4).
    19. Napier, Elizabeth & Liu, Steven Y.H. & Liu, Jingting, 2024. "Adaptive strength: Unveiling a multilevel dynamic process model for organizational resilience," Journal of Business Research, Elsevier, vol. 171(C).
    20. Zhou, Chao & Liao, Jinglin, 2024. "Home country digital finance development and post-entry internationalization speed of emerging market SMEs: Empirical evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:144:y:2022:i:c:p:729-739. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.